Daniel G. Sullivan

After being displaced from long-tenured jobs, workers often experience persistent, significant earnings losses. New research suggests that retraining in certain “high-return” fields can substantially reduce these losses. In a new Hamilton Project paper, Louis S. Jacobson, Robert J. LaLonde and Daniel G. Sullivan propose the establishment of a Displaced Worker Training (DWT) Program to distribute grants to displaced workers so they can obtain longer-term training to substantially increase their earnings. The DWT Program would also leverage the nation’s One-Stop Career Centers to assess and counsel grantees.

Governor Jennifer Granholm (D-Mich.) joined former U.S. Treasury Secretary Robert E. Rubin, Fresno Mayor Ashley Swearengin, New York City Deputy Mayor Steve Goldsmith, and other experts in a Hamilton Project forum focused on policy solutions for renewing American communities. The Hamilton Project released a strategy paper and three new proposals that provide a range of options for helping communities and workers recover from recent economic shocks.

Robert LaLonde of the University of Chicago and Daniel Sullivan of the Federal Reserve Bank of Chicago suggest that retraining through our nation’s community colleges is a way to reduce the skills gaps of at least some of these displaced workers and increase their reemployment earnings.